Identifier
Created
Classification
Origin
07ULAANBAATAR268
2007-05-08 05:59:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ulaanbaatar
Cable title:  

Western Snapshots Part 2 of 3: Bayan Ulgii - Home to

Tags:  PGOV ETRD SENV PREL EMIN SOCI MG 
pdf how-to read a cable
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RR RUEHLMC RUEHVK
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ZNR UUUUU ZZH
R 080559Z MAY 07
FM AMEMBASSY ULAANBAATAR
TO RUEHC/SECSTATE WASHDC 1073
INFO RUEHUL/AMEMBASSY SEOUL 2733
RUEHBJ/AMEMBASSY BEIJING 5540
RUEHMO/AMEMBASSY MOSCOW 1761
RUEHKO/AMEMBASSY TOKYO 2468
RUEHOT/AMEMBASSY OTTAWA 0434
RUEHML/AMEMBASSY MANILA 1363
RUEHBK/AMEMBASSY BANGKOK 1456
RUEHVK/AMCONSUL VLADIVOSTOK 0094
RUEATRS/DEPT OF TREASURY WASHDC
RUCPODC/USDOC WASHDC 1260
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC 0565
RUEKJCS/SECDEF WASHDC
RUEHRC/USDA FAS WASHDC
UNCLAS SECTION 01 OF 06 ULAANBAATAR 000268 

SIPDIS

SENSITIVE
SIPDIS

STATE PASS PEACE CORPS, OPIC AND EXIMBANK
STATE PASS EPA AND DEPT OF INTERIOR FOR NATIONAL PARK SERVICE
STATE FOR EAP/CM, OES, PD/ECA, AND EB/TPP
USAID FOR DEIDRA WINSTON
BANGKOK AND MANILA FOR USAID
TREASURY FOR T.T. YANG
USDA FOR FAS FOR N. SAKLAH

E.O. 12958: N/A
TAGS: PGOV ETRD SENV PREL EMIN SOCI MG
SUBJECT: Western Snapshots Part 2 of 3: Bayan Ulgii - Home to
Mongolia's Kazakh Minority

Ref: A) Ulaanbaatar 253, B) 06 Ulaanbaatar 0237, C) Ulaanbaatar

0234, D) Ulaanbaatar 245

SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION

UNCLAS SECTION 01 OF 06 ULAANBAATAR 000268

SIPDIS

SENSITIVE
SIPDIS

STATE PASS PEACE CORPS, OPIC AND EXIMBANK
STATE PASS EPA AND DEPT OF INTERIOR FOR NATIONAL PARK SERVICE
STATE FOR EAP/CM, OES, PD/ECA, AND EB/TPP
USAID FOR DEIDRA WINSTON
BANGKOK AND MANILA FOR USAID
TREASURY FOR T.T. YANG
USDA FOR FAS FOR N. SAKLAH

E.O. 12958: N/A
TAGS: PGOV ETRD SENV PREL EMIN SOCI MG
SUBJECT: Western Snapshots Part 2 of 3: Bayan Ulgii - Home to
Mongolia's Kazakh Minority

Ref: A) Ulaanbaatar 253, B) 06 Ulaanbaatar 0237, C) Ulaanbaatar

0234, D) Ulaanbaatar 245

SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION


1. (SBU) SUMMARY: The Charge visited Bayan Ulgii (BU) aimag
(province) in Mongolia's far west April 24/25. BU is home to
Mongolia's largest ethnic minority group: Moslem Kazakhs make up 92%
of the aimag's 100,000 citizens. Several BU interlocutors stressed
that they are "calm, moderate, secular Sunni" adherents that eschew
radical Islam and those twisting it to justify violence. Contacts
described the region's quiet acceptance that this far western area
is largely "forgotten or ignored" by those in power in Ulaanbaatar,
especially with respect to budget allocations and attention to its
concerns. Business and government officials nonetheless see tourism
(including sales of colorful Kazakh handicrafts)as a growth sector
as well as processing of cashmere and other animal products, trade
with neighboring China or Russia, and mining. USDA monetized
commodities-funded loan guarantees are successfully stimulating
entrepreneurship and job creation. A USAID-funded court automation
project is making important contributions to rule of law and
governance. Educators requested more books, Peace Corps Volunteers,
and contacts with U.S. universities. Media reps sought training,
funding, and equipment upgrades (from 1960's vintage systems). END
SUMMARY.

Itinerary: Emphasis on Islam
--------------


2. (U) Charge visited Bayan Ulgii (BU) aimag (province) April 24/25,
on the second of three stops during an April 23-28 swing through
Mongolia's three western most aimags. (Note: Ref A summarizes
Charge's visit to Khovd. Ref B for a summary of the face of Islam
in Mongolia.) He met with Bayan Ulgii Aimag (province) and also

Ulgii City (provincial capital) officials, Mongolia's Islamic
Society Head and Imams and visited Ulgii City's mosque, business
representatives, Vocational Teachers College, and Eastern Kazakhstan
University Branch Campus professors, and USAID-funded GER Initiative
CHF leaders as well as three local program participants. He also
toured the bazaar and visited the aimag's museum. This cable, the
second of three, provides a snapshot of the brief visit to Bayan
Ulgii.

Governor Reviews Aimag's Plusses and Minuses
--------------


3. (U) Bayan Ulgii aimag Governor Khabsator told the Charge April 25
that Kazakhs make up 92% of the aimag's 100,000 citizens, with the
remaining 8% distributed among several other ethnic groups spread
over some 46,000 square kilometers. (Note: For reference, this
makes Bayan-Ulgii about 50% larger than the state of Maryland, but
with 2% of the population.) He volunteered that the Kazakhs follow
a "calm form of Islam" and the remainder of the population is a
mixture of Buddhist and Shamanist. The region's economy is driven
largely by herding as well as trade with neighboring Russia and
China. But some food processing factories have recently opened, and
some firms also process leather and wool. He noted unemployment was
fairly high (other interlocutors put it at around 30%),but he
attributed this in part to Kazakh traditions of children staying
close by and supporting their parents, which tended to cluster many
people around fewer jobs. Fortunately, significant growth in small
and medium enterprises has provided jobs; otherwise, unemployment
would have been even worse. However, the Governor noted that the
region's a high population growth rate presents an ongoing
challenge. Last year the aimag created 2,000 jobs but needs to
create as many again this year if it is to keep up with local
employment needs.


4. (U) Governor Khabsator enumerated the regions problems: 1) far
from Ulaanbaatar, making goods and travel more expensive; 2) poor

ULAANBAATA 00000268 002 OF 006


infrastructure in terms of roads, buildings, etc., and the region
depends on Russia for electricity so it has frequent outages (Note:
The Russians complain the aimag doesn't pay its bills on time),and;
3) there is little foreign direct investment (FDI) and little
Russian or Chinese interest in making such investments. He
complained that recently Russia had become more "protectionist,"
having forced out "non-Russian" traders from its border area,
resulting in the return of some 400 BU traders. The Governor said
BU's advantages include: 1) a region with significant tourism
resources, well-endowed by nature and with many ethnic groups; 2)
mineral resources which have been largely untapped, 3) good trading
proximity to Russia and China, and; 4) a strong handicrafts
tradition. He lamented the lack of progress on the central
government promised free trade zone and noted a road connecting
Russia and China remained unfinished because BU lacked funding to
finish the remaining 150 kilometers passing through its territory.
The central government provides 80% of the aimag's budget, with 20%
coming from locally raised revenues. He expressed gratitude for
USG-funded development and PAO programs, and he was grateful for
Peace Corps support but politely complained that BU was
"underrepresented" in this regard compared to other less populated
aimags. (Note: BU ranks third in population among Mongolia's
aimags, but 17 of 21 in physical size.)


4. (U) Citizen's Khural Chairman Erjan said the 35 member Khural is
comprised of 17 members from the Mongolian People's Revolutionary
Party (the much-changed successor to the former Communist Party);16
elected under the Motherland Democratic Party; Coalition (MDC)
banner and 2 independents. Under an agreement reached following the
2004 election, the Governor's seat is held by the MPRP while the
Khural Chairmanship is held by an MDC member. Nine members in the
Khural's Presidium work full-time, with four each for the two major
parties plus one independent. Of the aimag's 13 soums, six are held
by MDC members and six by the MPRP.


5. (U) The Charge stated noted that the U.S. and Mongolia are good
friends. He described the range of cooperation between the two
countries. The U.S. was proud, as President Bush had said during
his 2005 visit, to be Mongolia's "third neighbor." The Charge noted
the Embassy planned to expand its outreach this year, the 20th
anniversary of the establishment of diplomatic relations, adding
that the Ambassador planned to visit the region later this year. He
noted this was a familiarization visit, but that he also hoped to
identify potential areas for cooperation in commercial, educational,
and other sectors.

Ulgii City Governor
--------------


5. (U) On April 24, a local wrestling champion hosted a cordial,
three hour family-style dinner at which Ulgii City Governor
Khaisaina provided an overview of the provincial capital's
situation. Only 400 of the city's 6,300 families live in
apartments; the rest live in single family houses, not in gers (yurt
in Turkish and Russian) as elsewhere in Mongolia. The city boasts
factories for cashmere, camel hair, and wool processing, and small
traders sells goods imported from Russia and Chin. Roughly 30% of
the city's 30,000 residents remain unemployed, making job creation
high among the city governor's tasks. The city has 10 primary and 10
secondary schools, including 3 private secondary schools, and has a
technical college (focusing on constructions skills and hopeful of
MCC funding) as well as a branch university and a branch of the
Eastern Kazakhstan University. The city has one TV station, five FM
radio stations, and four cell phone providers. Last year some 3,000
foreign visitors passed through BU, largely trekking to mountain and
nature areas.


6. (U) Governor Khaisana listed key problems the city faces,
including: 1) pollution - as all but the few apartment dwellers burn
coal for heating and cooking; 2) lighting - light poles were

ULAANBAATA 00000268 003 OF 006


installed during the Soviet era, but they now lack lamps, and he
worries about security and safety in the dark city; 3)
desertification - climate changes have yielded more droughts and
overgrazing is a problem; 4) too few schools - leading to
over-crowding (built for 900 but servicing 2,000) and sometimes
triple shift use of the schools; and, 5) poor medical care and
diagnostic facilities.

"Calm" Islam the Dominant Religion
--------------


7. (U) The Charge briefly paid his respects at Bayan Ulgi's main
mosque on April 25 where he met with Mongolia's Islamic Society
leaders. These leaders said Mongolia has 32 mosques in total.
Ulgii City is home to five of them, and the aimag hosts another
nine, with the remainder strewn among the rest of Mongolia's aimags.
Plans are underway to build a mosque in Ulaanbaatar, the first
ever, using locally contributed funds. Approximately 20 Mongolians
make the Hajj pilgrimage to Mecca each year, all self-financed,
although Saudi Arabia initially helped finance the travels of the
first few tranches of about 30 per year for the first three years
after the Soviets left in the early 1990's. The Soviets did not
allow mosques to operate and prayers were conducted in individuals'
homes. Islamic leaders stressed they were "secular Sunnis" and not
radicals and that they did not support the violent approaches
radicals espoused.


8. (SBU) Over a dinner hosted by the Charge, Islamic Society Head
Sovetkhan, joined by Imam Ayadas, and Imam Nurbeck, a Kazakhstani
teacher at their local school, reiterated that the Society was
strongly opposed to radical Islam and lamented the damage done to
the religion by those using it to justify violence. He said
approximately 200 students from the aimag attended schools overseas,
principally in Turkey, Egypt, and the United Arab Emirates. What
kind of ideas did these students bring back with them, the Charge
asked? Sovetkhan said the Society's leadership examined them
closely on return to ensure they had not been "radicalized" and they
were satisfied that, to date, this had not been the case. Rather,
they were impressed with the quality of the educations they obtained
overseas relative to what could be provided locally.


9. (SBU) He said the aimag had particularly close ties with Turkey
and Kazakhstan, as both provided considerable educational assistance
underpinned by a moderate, secular philosophy. He said the Charge's
visit earlier in the day to the main mosque to pay his respects was
especially appreciated by the Society's leaders, as was President
Bush's Ramadan message. Sovetkhan expressed gratitude for the
Charge's offer to host an event for Mongolian Islamic leaders during
their mid-May national conference in Ulaanbaatar. (Note: Sovetkhan
later told POL FSN that about 50-60 participants will likely attend
the May 18-20 conference, including Mongolia's Moslem community
leaders -- about 40 from BU and four Kazakh-dominated soums from
neighboring Khovd aimag -- plus guests from Turkey, Kazakhstan,
etc.)


10. (SBU) Sovetkhan said the Islamic Society did not have
sufficient funds to provide social welfare, as such societies do
elsewhere. He complained that the aimag was not "well- or
proportionally" funded by the central government and thus
infrastructure, educational and medical services all suffered. As
to other social problems, he was concerned about growing alcoholism
among his flock, acknowledging that Mongolian Kazakh Moslems
sometimes tipped back a bowl or two of airag, fermented mare's milk.
(NOTE: To put this in perspective, our Embassy FSN driver said he
had observed just three "drunks" in the entirety of our two evenings
in Bayan Ulgii, adding, by comparison, the same number might be seen
in one late night hour along a five block stretch of road in
Ulaanbaatar, by his calculations. In the opinion of our Commercial
Officer, who has spent a great deal of time in Bayan Ulgii as both a
Peace Corps Volunteer and private citizen and thus is familiar with

ULAANBAATA 00000268 004 OF 006


alcohol use and abuse among the Kazakhs, drinking has been going on
at about the same pace since before the fall of socialism in the
early 1990's. The renaissance of Islam in BU, in his view, has
simply sensitized the local Imams to a problem that pre-existed
their coming.)

Business Leaders Explore Prospects:
Tourism, Trade, and Mining
--------------


1. (U) Meeting with a few business leaders, including the head of
the local chamber of commerce, the Charge learned that the upturn in
business activity in recent years stemmed at least partially from
the restoration of cashmere and wool processing, which had fallen
dormant after the Soviets withdrew in the early 1990s. Tourism is
the best growth prospect in their view, and they hope to capture
"co-, ethno, and extreme" tourists in growing numbers in the years
to come, although they realize they are dependent on establishing
better, more frequent, and cheaper air connections to Ulaanbaatar (a
second airline, EZnis recently began flying to BU, but fares had yet
to experience much competition; see ref D) and more infrastructure
(hotels, tourism firms, etc.) is needed to become a true end
destination. They complained that often tours are booked through
operators in the capitol (some even position their own vehicles in
BU for the summer tourism season and then withdraw them thereafter),
yielding few if any benefits for the local firms and services.
There is another international connection via a weekly flight
to/from Kazakhstan.


12. (U) While they believe there are substantial mineral resources
in their aimag, they understand development and management of these
resources are outside the aimag's purview and fall under the central
government. Business reps hoped that the Russia-China road, nearly
complete save the portion through Mongolia, could be routed through
BU, but they too were doubtful that the central government will
provide the resources needed to build the 100 kilometers needed to
connect the road through BU. (Note: These were the same hopes -
the road and the FTZ - mooted during the previous Ambassador's swing
through the area last June.) Reps complained that electricity was
expensive, at 10 cents per kilowatt hour, and the Russians routinely
cut the power, disrupting businesses, but they hoped new
hydro-electric power projects underway in Mongolia's western region
will reduce dependence on Russian electricity. Reps also complained
that capital was not available and application procedures were
expensive and bureaucratic (World Bank and Asian Development Banks
required project proposals be written in English and then these
banks seemed to favor UB-based proposals over distant aimag needs).


USDA-Funded Development Program
A Resounding Success
--------------


13. (U) The Charge was briefed by the local Growing Entrepreneurship
Rapidly (GER) Initiative representative regarding loan guarantees
drawing on funds provided by monetized USDA wheat and administered
by USAID. About 149 loans had been made averaging about US$1,000
each since lending began last November, and some 600 clients had
availed themselves of business services, training, etc. Afterwards,
Charge visited three clients, a bakery, a handicrafts producer, and
a small cafe. (NOTE: These three clients, among the program's most
successful, had generated a total of 13 new jobs, demonstrating the
importance of this USDA-funded, USAID-managed program in
contributing to the total of 2,000 aimag jobs created last year
according to the Governor.)

Handicrafts Cooperative Expansion Plans;
U.S. GSP Program Explored
--------------


ULAANBAATA 00000268 005 OF 006



14. (U) The head of a local Kazakh women's handicraft cooperative
said the coop had begun with 10 members a few years ago but now
boasted some 30 members. All had received some training to ensure
quality standards were understood. The group has participated in a
number of trade fairs, including one in Urumqi, China. She hoped
the coop could branch out and eventually have operations in all the
aimag's soums (county),but that start up costs for larger scale
operations meant the group needed about US$3,000 to $5,000 per soum.
Charge explained the U.S.' Generalized System of Preference (GSP)
and noted ongoing work with the GOM for a special agreement on
handicrafts, which would be of interest to these producers. Asked
about component costs for a traditional 4x7 foot Kazakh ger hanging,
she said the cloth backing, all thread, and materials - all from
China -- cost about US$20 and about US$40 in labor goes into
producing each hanging.

Judicial Reform Project Much Appreciated
--------------


15. (U) During a brief meeting with Bayan Ulgii aimag Chief Justice
Ashabyl, Ashabyl said the computerization of the courts had
significantly increased the speed and quality of the work being
performed. Previously, a clerk hand-typed all briefs and decisions,
often working seven days a week late into the night. Even then the
courts rarely met the requirement that the decision be made
available to the concerned parties within one week. Now, this
information was available almost as soon as the case concluded, and
information on pending cases was instantly available via a
stand-alone computer at the ground level entry, so all could learn
the status of a given case. He expressed deep gratitude to the USG
for providing this equipment and identified a few remaining needs
which would enhance the court's performance (five more computers for
additional staff plus matching printers and an additional photo-copy
machine). Once the judges go on-line, they expect they'll be able
to both share their own decisions (they do now but via hand-carried
disks) in-house as well as with other aimag courts.

English Language Teachers Lack Books, Budget;
Seek U.S. University Contacts, Peace Corps Vols
-------------- --


16. (U) During a joint meeting with English language teacher from
the Bayan Ulgii Teachers College, the Vocational Technical School,
and the Eastern Kazakhstan University Branch Campus English language
teachers, all noted they often had just one textbook for their
classes and they asked whether the USG might provide classroom sets
of texts, ideally in Kazkh language. There were few training aids,
such as tape recorders or computers and all teachers felt they
needed additional professional development. They also noted very
helpful past cooperation with Peace Corps Volunteers and asked
whether some might be assigned to BU. Teachers sought contacts with
U.S. universities and the Charge said the PAO would help them
initiate this process.

Environmental Protection Preserves
Tourism Asset; USG Cooperation Sought
--------------


17. (U) Mongol Altai Nuruu Special Protected Area Office Head
Mantai described his team's efforts to preserve and protect the
aimag's five major reserves, representing 21% of the aimag's
territory, under his care. He said that these reserves included
some of western Mongolia's most scenic terrain, including the
revered Tavan Bogd Mountain, and was home to many at risk or
endangered species, such as the snow leopard. He noted that the
protected areas were a relatively recent creation, so it contained
some existing family homesteads and small villages. Tourism is
growing, he said, but tour operators were only now beginning to
appreciate the importance of protecting the environment and
employing "green" techniques and technologies.

ULAANBAATA 00000268 006 OF 006




18. (U) Mantai's concerns included: 1) illegal logging both by
Mongolians and neighboring Chinese and Russians;; 2) increased wolf
populations that threaten animal and human populations in the
protected areas and adjacent buffer zones; 3) "human activities,"
which he described as herders grazing their animals in these areas
before or after the March to October permitted period; 4) use of
weapons by Border Forces (implying hunting),although they also help
protect against poachers; and 5) small scale artisanal miners
beginning to operate in some areas. He said his office would
welcome any assistance that might be offered, and Charge undertook
to provide some suggestions for potential cooperation both at the
U.S. national and state levels.

Media Meeting: Help Us - Please!
--------------


19. (U) During a pleasant half hour exchange with BU's electronic
and print media representatives, Charge delivered common points (see
para 5) and then took questions and comments. The discussion
quickly shifted to a wish list of the group's needs, including: 1)
professional development and English language training for the
staff; 2) financial assistance to allow the cash-strapped,
government-owned newspaper (the nation's only Kazakh language paper)
to return to at least weekly rather than quarterly publication; 3)
newer radio and TV production consoles than the vintage 1960's Czech
equipment currently being operated; and 4) avian influenza materials
in English or Mongolian for translation into Kazakh language spots.
Charge said he would refer these requests to the relevant embassy
sections.

Goldbeck